The Turkish Lira devaluated against the USD by 44 percent between 2020 and 2021, resulting in high price increases. As Turkiye relies on oil imports for energy and transportation, the production and logistics costs put inflationary pressures. The inflation rate reached 36 percent, whereas the food inflation was 44 percent. Meanwhile the Turkish economy grew by 9.1 percent in Q4 2021, mainly driven by the service sector which was severely affected by the lockdown measures against the COVID-19 pandemic. However, the increase in production costs would possibly challenge the Turkish economy in the upcoming period.
Q4 2021 – WFP Türkiye Market Bulletin
The MEB increased by 32 percent yearly and reached TRY 731 in December 2021. The monthly inflation rate reached 36 percent, the Turkish Lira depreciated and USD/TRY was exchanged for 13.5. As per the Turkish economy, it grew by 9.1 percent in Q4 2021.